All Forum Posts by: Derek Luttrell

@Brie Schmidt thank you for that Excel doc--though the properties profiled require six-figure down payments, and 8-10 years to recoup that down payment. I can't say that really fits into my strategy. 

We all have our acquired tastes, but I don't need to be young to enjoy my time in UK Village. There are wristband-donning street youths in every neighborhood of the city. Coming previously from the Southport Corridor and then River North, I appreciate that the UK Village offers a neighborhood feel without all the bourgeois. Maybe that's just me, but I'm okay with that.

@PJ Kolnikdo you live in the condo and then you bought the three-flat with 25% down? Is the 3-flat in need of major rehab? I'd love to know more about how your journey in Chicago has played out so far. 

@Brie Schmidt do you own any multi-families in Chicago? What is your niche here, if you happen to have one?

I bought my first/current condo with a 5% down conventional loan, though 2% of it was granted to me by the lender. I was planning on living here for two years, at which point I will be 27 and would like to then end my days of having roommates. House hacking at that point would require buying a multi-family, which are wildly overpriced in any of the neighborhoods worth living in (at least in today's market.) 

I'd be plenty happy with hacking a duplex, but the numbers just don't make sense in this city. 

@Daniel F. I guess a concern with a 15 year loan that's nearly breaking even is that if property taxes or HOA dues were to increase, I could get dangerously close to losing money each month.

Also, if I refinanced and took out future equity, the increased loan from that could have the same effect. But I do love the idea of owning it at age 40. 

@Brie Schmidt thank you for your input. I agree that the possibility of the association changing bylaws down the line is worrisome. Being from Chicago, do you have any personal experience with this happening? 

I see in that forum post, the poster purchased multiple units in the same building. He kind of shot himself in the foot, as it is a common rule that only a certain percentage of a building's units can be rented at any given time. What is your suggestion for someone like me who is already house hacking and wanting to invest locally in Chicago?

@Bob Floss II that's a good point about remembering not to look at the condos as if it'd be me who is about to move in. I guess "sizable" monthly profit is subjective, but I'm aiming to set $350/month as a personal minimum.

@Daniel F. this leads me to you--would you still consider it worthwhile profiting $300/month on a 30-year conventional loan? On one unit I have my eye on, I would profit $100-150/month on a 15-year. I hadn't really considered a 15-year loan before. 

I'm priced out of downtown (I just closed on my personal condo 5 months ago), and I also want to focus on smaller buildings opposed to high-rises. I've looked in Humboldt Park (east side...west is still a bit rough), and I'm seeing one up in Albany Park this weekend. The rents are lower than in other city hotspots, there is good public transit and I can easily qualify for the loan. 

@Harjeet Bhatti thanks for the response. I'm not concerned about the lender's requirements, really. In fact, I'd agree that at least 10% should go into reserves every month, and I believe that buildings with fewer renters are better taken care of than ones filled up with renters. I can't disagree with those requirements. 

My main question is whether there are people out there who do have condos as their niche, since I've gotten the feeling through my time on BP that many people think condos are where cash flow goes to die. Living in Chicago, though, I see potential because condos are a primary housing type here, and they are easy to rent (as long as the association allows it)

Hi All, 

I wanted send a beacon out to fellow Chicago investors and ask if anyone has a portfolio of condos within the city, since single family hardly exists out here. I know the popular opinion is that special assessments can wipe out cash flow, not all associations allow renters, association policies can suddenly change, but I successfully house-hack through roommates in my Ukrainian Village condo right now (I'm 25 so for now it feels weird NOT to have roommates), and for my first true investment property I want to stay close to home (no more than 20 minute drive/public transit). 

I have a pre-approval with my lender with stipulations that the building can't be over 50% tenant-occupied, and at least 10% of the monthly HOA dues need to go into reserves. Does anyone reading have a few successfully rented Chicago condos under their belt? The rental market is great in this city, and I'd really like to invest close to home as I love it here and don't see myself leaving anytime soon.

@Jerry Shen I'm not sure what platform you use, but I know Coinbase sets sell limits, so for me, I couldn't liquidate my entire position in one fell swoop even if I wanted to. Once I reached the sell limit, I would have to wait a week before being allowed to sell again. Something to consider, if you haven't already. 

You're living very cheaply, which is the whole idea. I house hack and have 87% of my monthly housing paid for by other people, and it's amazing how much faster my savings is able to grow because of it. However, if you're able to, I would suggest living in one of the cheaper units yourself in order to fully capitalize on the revenue opportunity. If you lived in the $700 unit and rented your unit for $1200, you would have your mortgage covered, and then some.